B. USNATO 0574
C. USDELMC 101/75(DTG 031450Z FEB 75)
D. STATE 025780(EXDIS)
E. STATE 026620(EXDIS)
SUMMARY: DURING DPC DISCUSSIONOF UK DEFENSE REVIEW FEBRUARY 6,
PERMREPS CONCURRED IN MC ASSESSMENT (REF B), SYMPATHIZED WITH UK
ECONOMIC PLIGHT (BUT WITH MOST MEMBERS REQUESTING UK RECONSIDERA-
TION OF AT LEAST PART OF FIRM UK RESOURCE DECISION), AND ADDED
POLICIAL AND PSYCHOLOGICAL DIMENSION TO EXPRESSED MILITARY CONCERNS.
TONE OF MEETING WAS GENERALLY CONSTRUCTIVE. DPC RATIFIED MC
INVITATION FOR CONTINUING CONSULTATIONS BETWEEN UK ANDMNC'S, AND
DIRECTED IS TO PRODUCE DPC COMMUNICATION TO UK FOR CONSIDERATION
SECRET
PAGE 02 NATO 00657 01 OF 03 071545Z
AT FURTHER MEETING FEBRUARY 10. END SUMMARY.
1. AT DPC MEETING FEBRUARY 6, ACTING CHAIRMAN PANSA OPENED
DISCUSSION BY STATING THAT UK DEFENSE REVIEW REDUCTIONS ARE
LARGEST AND MOST IMPORTANT WHICH DPC HAS EVER CONSIDERED; INVOLVING
A KEY ALLY WHICH MAKES MAJOR FORCE CONTRIBUTIONS TO ALL
THREE MNC'S. HE RECOUNTED HISTORY OF INTER-ALLIED CONSULTATIONS
SO FAR (REF A) POINTING OUT THAT PROCESS OF CONSULTATION WILL NOT END
WITH DPC, BECAUSE OF UNRESOLVED ASPECTS IN UK PLANS AND
BECAUSE OF MILITARY COMMITTEE (MC) RECOMMENDATION FOR CONTINUED
CONSULTATIONS. HE PROPOSED THAT DPC USE CURRENT MEETING FOR
EXPRESSION OF INSTRUCTED NATIONAL VIESS ON UK PLANS AND MC ASSESSMENT
(REF B),ON THE BASIS OF WHICH IS WOULD PRODUCE A DRAFT COMMUNI-
CATION FROM DPC TO UK GOVERNMENT, FOR DPC CONSIDERATION
FEBRUARY 10. HE ALSO STATED NEED FOR PRESS GUIDANCE ON UK
DEFENSE REVIEW CONSULTATIONS.
2. ADMIRAL SIR PETER HILL-NORTON (CMC) ECHOED PANSA VIEW OF BROAD
SCOPE OF UK REDUCTION PLANS, STATING THAT UK'S HAD BEEN "QUITE THE
MOST DIFFICULT REVIEW." HE SAID MC ASSESSMENT IDENTIFIED AREAS
OF GREATEST MILITARY CONCERN, BUT HE HAD "NO DOUBT" THAT,
EVEN RECOGNIZING UK PRIORITY TO NATO COMMITMENTS, LIMITED
REMAINING RESOURCES WOULD RESULT IN "VERY SERIOUS DEGRADATION" OF
ALLIED CAPABILITY. HE SAID HE PLANS TO ASK MNC'S TO PURSUE
CONTINUED CONSULTATIONS "WITH URGENCY", BUTTHAT IF SUCH CON-
SULTATIONS FAIL, ONLY ONE OF THREE RESULTS COULD ENSURE:
OTHER ALLIED GOVERNMENTS MUST TAKE UP THE SLACK,THE UK MUST
RECONSIDER ITS RESOURCE ALLOCATION OR ALLIES MUST FACE DAMAGE. HE
SUPPORTED MC ASSESSMENT AS STRIKING THE RIGHT BALANCE BETWEEN UK
VIEW (THAT ONE SHOULD NOT OVEREMPHASIZE EFFECT OF UCTS)
AND VIEW OF OTHERS THAT UK PLANS PLACE NATO STRATEGIC CONCEPT IN
QUESTION (BELGIUM-SEE REF C).FINALLY, HE EXPRESSED PERSONAL
HOPE THAT THE UK WOULD "RETHINK" THE EXTENT OT ITS REDUCTIONS
AND AGREE TO CONTINUING CONSULTATIONS WITH MNC'S.
3. PECK (UK ) REPLIED THAT PROCESS OF CONSULTATIONS "WILL NOT
END HERE." HE THEN DELIVERED INSTRUCTED STATEMENT (SEPTEL)
REVIEWING ECONOMIC IMPERATIVES UNDERLYING DEFENSE REDUCTIONS,
FACT THAT DONWARD ADJUSTMENTS WILL BRING UK DEFENSE EXPENDITURES
AS A PERCENT OF GNP TOWARD NATO EUROPE AVERAGE, FIRMNESS OF UK
DECISION TO REDUCE AND FIRMNESS ON SIZE OF REDUCTION, UK PRIORITY
SECRET
PAGE 03 NATO 00657 01 OF 03 071545Z
ON NATO AREA AND MINIMUM EFFECT OF REDUCTIONS OF ALLIANCE
CAPABILITIES, GIVEN RESOURCE CONSTRAINTS. HE STATED UK IS
PREPARED TO CONSIDER ANY ALTERNATIVES WITHIN THESE RESOURCE
CONSTRAINTS, BUT QUOTE MY MINISTERS WILL NOT BE VERY RECEPTIVE
TO RECOMMENDATIONS FROM THE ALLIANCE WHICH, IN EFFECT, MERELY
URGE THEM TO RECONSIDER THEIR DECISIONON THE LEVEL OF RESOURCES
THAT BRITAIN CAN DEVOTE TO DEFENSE. END QUOTE.
4. CATALANO (ITALY) CITED DECEMBER 1974 DPC MINISTERIAL
STATEMENT OF MOD FORLANI CALLING FOR REVISION OF PRIORITIES
TO PREVENT DEPARTURE OF UK FLAG FROM THE MEDITERRANEAN. HE
NOTED MC ASSESSMENT USE OF SUCH TERMS AS "VERY SERIOUS...
GRAVE... SEVERE BLOW," IN REFERRING TO EFFECT OF UK PLANS
IN SOUTHERN REGION. HE TERMED MEDITERRANEAN POLITICAL
SITUTATION "PARTICULARLY FLUID AND WORRISOME," AND EXPRESSED
SURPRISE THAT UK SHOULD GIVE "FIRST PRIORITY FOR REDUCTIONS
TO THE MEDITERRANEAN." HE PREDICTED THAT SOVIETS WOULD
INTERPRET UK WITHDRAWAL AS A WEAKENING OF NATO DETERRENTAND PUBLICS
SEE IT AS WARNING SIGN OF ALLIANCE DISCORD AND DECAY. HE
THEN"FORMALLY MOVED" THAT DPC AFFIRM CONTINUED UK MILITARY PRESENCE
IN MEDITERRANEAN AS "ESSENTIAL," WITH EXTENT OF PRESENCE
SUBJECT TO CONSULTATIONS, BUT TO INCLUDE AT LEAST NAVAL EXERCISE
PARTICIPATION. FINALLY, HE URGED MAINTENANCE OF UK CAPABILITY
TO REINFORCE THE SOUTHERN REGION AS "LOW-COST, NO-COST" MEASURE.
SECRET
PAGE 01 NATO 00657 02 OF 03 072033Z
70 S
ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 PM-03 INR-07 L-02 ACDA-05
NSAE-00 PA-01 RSC-01 PRS-01 SP-02 USIA-06 TRSE-00
SAJ-01 MC-02 EB-07 /051 W
--------------------- 072429
P R 071515Z FEB 75
FM USMISSION NATO
TO SECSTATE WASHDC PRIORITY 9972
SECDEF WASHDC PRIORITY
INFO ALL NATO CAPITALS 4969
USCICEUR
USNMR SHAPE
USLOSACLANT
CINCLANT
USDOCOSOUTH
USDEL MBFR VIENNA
S E C R E T SECTION 2 OF 3 USNATO 657
5. DE STAERCKE (BELGIUM) REMARKED THAT IT IS DIFFICULT TO BE
"EITHER PLEASED OR SAD" WITH UK PLANS. HE STATED: "I MUST
STRIKE MY OWNBREAST FIRST," IN THAT UK FOLLOWS EXAMPLE OF
OTHERS, BUT THAT UK REDUCTIONS WOULD HAVE A "MOST STRIKING"
EFFECT ON PUBLIC OPINION, SINCE THEY CALLED THE STRATEGIC
CONCEPT AND DETERRENCE ITSELF INTO QUESTION. HE ASKED PECK IF
UK WOULD CONSIDER MC PRIORITIES FOR RESTORATION, AND ASKED
ADMIRAL SIR PETER HILL-NORTON IF SOUTHERN FLANK STILL EXISTS AND
WHETHER ONE CAN DEFEND IT. HE STRONGLY AGREED WITH CATALANO ON
DANGERS WHICH WILL FLOW FROM WITHDRAWAL OF UNION JACK FROM
MEDITERRANEAN, AND ASKED PERMREPS RHETORICALLY IF THEY WERE NOT
STRUCK BY POLITICL IMPLICATIONS OF FACT THAT US WOULD BE ONLY
REMAINING ALLY ABLE TO BALANCE WP POWER IN THAT REGION. CMC
HILL-NORTON REPLIED THAT PLANNED UK WITHDRAWAL WOULD TAKE PLACE
OVER A PERIOD OF YEARS, THAT SOUTHERN FLANK STILL EXISTS AND
MILITARY AUTHORITIES ARE CONFIDENT THEY CAN DEFEND IT AT THIS TIME.
6. AMBASSADOR BRUCE(US),DRAWING ON REFS D AND E, STATED US
SECRET
PAGE 02 NATO 00657 02 OF 03 072033Z
WAS PLEASED WITH UK PRIORITY ON CONTRIBUTION TO CENTER REGION,
EASTERN ATLANTIC AND HOME ISLANDS. HE EXPRESSED CONCERN WITH
DEGRADATION IN ALLIANCE CAPABILITIES FOR REINFORCEMENT,
PROPOSING REDUCTION IN UK OVERHEAD COSTS AS AN ALTERNATIVE,
AND SUGGESTED UK LESSEN IMPACT ON MEDITERRANEAN NAVAL AND AIR
REDUCTIONS BY PUBLICLY ANNOUNCING INTENT TO MAKE PERIODIC SHIP
AND TASK FORCE DEPLOYMENTS TO AREA, AND PARTICIPATE IN NAVAL
EXERCISES. HE HOPED THAT UK WOULD ENSURE THAT DEFENSE EX-
PENDITURES ARE NOT CUT SIMPLY BECAUSE THEY ARE MORE EASILY
CONTROLLABLE, HE SAID THAT US FOR ITS PART IS DETERMINED TO
MAINTAIN REAL LEVEL OF DEFENSE SPENDING,BUT HE ALSO
STRESSED THAT OUR ABILITY TO DO SO
"IS BOUND TO BE INFLUENCED BY CONGRESSIONAL JUDGMENTS AS TO HOW
WELL OUR ALLIES ARE MAINTAINING THEIR FORCE LEVELS." FINALLY, HE
SUPPORTED MC RECOMMENDATION FOR CONTINUING UK-MNC CON-
SULTATIONS AND SUGGESTED UK AVOID CUTS PLANNED AT END OF
COMING FIVE- YEAR PERIOD BY SAVINGS ACHIEVED THROUGH PARTICIPA-
TION IN COOPERATIVE PROGRAMS,LOOKING TOWARD STANDARDIZATION OF
WEAPONRY(SEE SEPTEL.
7. BOSS(FRG) TOATLLY AGREED WITH MC ASSESSMENT. HE SAID
FIRMNESS OF UK DECISION ON AMOUNT OF REDUCTIONS MAKES CON-
STRUCTIVE CONSULTATION DIFFICULT, BUT URGED CONTINUED CON-
SULTATION. HE STATED UK REDUCTIONS INFLUENCE NORTHERN (BALTAP)
AS WELL AS SOUTHERN REGION, AND THAT OVERALL EFFECT IS A
"NOTICEABLE WEAKENING" OF ALLIED CAPABLITY TO DETER. HE
TOOK ISSUE PERCENT OF N GNP AS YARDSTICK FOR MEASURING
DEFENSE EFFORT, AND STATED THAT SINCE ONLY BASIS FOR DEFENSE
REVIEW IS ECONOMIC ,HE LOOKS FOR REVISION OF UK PLANS "AS
SOON AS THE ECONOMIC SITUATION IMPROVES.
8. CHARGE SELMER (NORWAY) EXPRESSED CONCERN THAT IN VIEW OF
FIRM UK DECISION ON RESOURCES, CONSULTATION MIGHT DEVELOP
INTO REGIONAL TUG-OF-WAR. HE SAID HIS AUTHORITIES STRESS
INTERDEPENDENCE OF ALL THREE REGIONS, BUT DREW SPECIAL
ATTENTION TO MC ASSESSMENTS' RECOMMENDATION FOR REVIEW OF
ASW/MCM INATLANTIC/CHANNEL AND NORTHERN FLNK REINFORCE-
MENT CAPABILITIES. HE SAID UK REINFORCEMENT REDUCTIONS
WOULD HAVE POLITICAL REPERCUSSIONS AND MIGHT RESULT IN
WP MISCONCEPTION ON DEPTH OF NATO COMMITMENT. HE ASKED
UK TO RECONSIDER REDUCTIONS IN LIGHT OF MC ASSESSMENT AND
SECRET
PAGE 03 NATO 00657 02 OF 03 072033Z
FIND SOLUTIONS BASED ON MC RESTORATION PRIORITIES.
9. MENZIES(CANADA) EXPRESSED UNDERSTANDING FOR UK
ECONOMIC PLIGHT, AND RECOGNIZED PRIORITY UK HAD GIVEN TO
CENTRAL FRONT, BUT STATED CAREFUL STUDY OF UK PLANS HAD
SHOWN THAT EFFECT OF CUTS IS WORSE THAN ON "FURST BLUSH."
HE DECLINED TO SAY WHICH REDUCTIONS WERE WORST, BUT POINTED
OUT CANADIAN AWARENESS OF IMPORTANCE OF UK CONTRIBUTION TO
ACLANT/ACCHAN. HE RECOMMENDED CLOSEST ALLIED CONSULTATION
OVER THE TEN YEARS OF THE REDUCTIONS,AND SUPPORTED
AMBASSADOR BRUCES' POINTS ON INCREASED EFFICIENCY THROUGH
ALLIED COOPERATION.
10. CHARGE BUWALDA (NETHERLANDS) STATED HE HAD BEENF FORCEFULLY
REMINDED THAT "PEOPLE INGLASS SOUSES SHOULD NOT THROW
STONES." HE EXPRESSED FULL SYMPATHY WITH UK ECONOMIC PLIGHT
AND WELCOMED UK PRIORITY TO CENTER REGION. HE STATED,
HOWEVER, THAT DEFENSE OF FRONT IS NOT POSSIBLE IF FLANKS
ARE NEGLECTED,THAT SOUTHERN REGION WAS ALREADY WEAKENED,
AND THAT UK REDUCTIONS WOULD HAVE MILITARY AND PSYCHOLOGICAL
EFFECTS ON ALLIED COHESION,SOLIDARITY AND RESOLVE, THUS
WEAKENING THE DETERRENT. HE FEARED AMPHIBIOUS LIFT RE-
DUCTIONS WOULD RESULT IN EVENTUALLOSS OF ASSULT CAPA-
BILITY ON NORTHERN FLANK,AND ECHOED NORWEGIAN POINT
OR REDUCTIONS IN ASW AND MCM (CABAPLITIEIES. HE NOTED
NETHERLANDS HAD AMENDED ITS DEFENSE REDUCTIONS AS A
RESULT OF ALLIED CONSULTATIONS AND FOUND CONSULTATION
PROCESS "USEFUL." HE RECOGNIZED UK ECONOMIC DIFFICULTIES,
BUT SUGGESTED SERIOUS UK THOUGHT TO RECONSIDERATION ON
RESOURCE.
11. SVART (DENMARK) EXPRESSED SYMPATHY WITH UK ECONOMIC
SITUATION AND RECOGNIZED THAT UK DEFENSE EXPENDITURE, EVEN
AT END OF TEN-YEAR PERIOD WOULD IMPLY A "VERY SIGNIFICANT
BUDER." HE ECHOED FRG AND NORWAY CONCERN OVER LOSS OF
75 PERCENT OF NORTHERN FLANK REINFORCEMENT CAPABILITY, BUT
NOTED UKMF DEPLOYMENT TO NORTHERN REGION WOULD STILL BE
POSSIBLE. HE STATED THAT "OVER-CONCERN"- REGION SHOULD NOT LEAD
TO AN UNTENABLE SITUATION ON THE FLANKS, AND HOPED UK WOULD
TAKE MC ASSESSMENT INTO ACCOUNT
IN FURTHER PLANNING.
SECRET
PAGE 04 NATO 00657 02 OF 03 072033Z
SECRET
PAGE 01 NATO 00657 03 OF 03 071804Z
70 S
ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 PM-03 INR-07 L-02 ACDA-05
NSAE-00 PA-01 RSC-01 PRS-01 SP-02 USIA-06 TRSE-00
SAJ-01 MC-02 EB-07 /051 W
--------------------- 070635
P R 071515Z FEB 75
FM USMISSION NATO
TO SECSTATE WASHDC PRIORITY 9973
SECDEF WASDC PRIORITY
INFO ALL NATO CAPITALS 4970
USCINCEUR
USNMR SHAPE
USLOSACLANT
CINCLANT
USDOCOSOUTH
USDEL MBFR VIENNA
S E C R E T SECTION 3 OF 3 USNATO 0657
12 ERALP(TURKEY), SPEAKING UNINSTRUCTED, MADE VERY SHORT
STATMENT RATIFYING PREVIOUS EXPRESSIONS OF INDIVISIBILITY
OF ALLIANCE DEFENSE. HE STATED MC AND SACEUR JUDGMENTS
WERE OF GREAT CONCERN AND NOTED PROSPECT FOR CONTINUING
UK/MNC CONSULTATIONS. IN OBVIOUS REFERENCE TO US MILITARY
ASSISTANCE CUT-OFF, HE NOTED THAT "EVENTS OF THE LAST FEW
DAYS MAY ALTER SITUATION CONSIDERABLY", AND HOPED THAT THESE
EVENTS WOULD BE TAKEN INTO ACCOUNT.
13. PECK(UK) THEN THANKED PERMREPS FOR UNDERSTANDING AND
SYMPHATHY WITH UK ECONOMIC SITUATION, WHILE REITERATING THAT UK
DECISION ON PLANNED LEVEL OF RESOURCES IS FIRM. IN ANSWER
TO DE STAERCKE'S QUESTION (PARA 5) ON MC PRIORITIES FOR
RESTORATION, PECK REPLIED THAT LONDON WOULD CONSIDER THESE
PRIORITIES WITHIN PLANNED RESOURCE CEILINGS.HE DEFENDED
UK USE OF PERCENT OF GNP AS A YARDSTICK, BECAUSE UK IS
TRYING TO MEASURE DEFENSE BURDEN ON RESOURCES. GNP IS
BEST BECAUSE IT QUOTE MEASURES DEFENCE AGAINST ALTERNATIVES
SECRET
PAGE 02 NATO 00657 03 OF 03 071804Z
END QUOTE. RESPONDING TO POINTS RAISED BY AMBASSADOR BRUCE,
PECK STATED THAT UK HAD ALREADY SERIOUSLY SCRUTINIZED
NATIONAL OVERHEAD, AND THAT UK WOULD DO MORE, INCLUDING
POSSIBLE REDUCTIONS WITHIN UK MOD. HE STATED THAT DEFENSE
IS NOT BEING CUT BECAUSE IT IS UNPOPULAR, AS SHOWN BY
PLANNED ANNUAL REAL DEFENSE INCREASE BY 1.6 PERCENT UP TO
1978/1979 AGAINST REAL ANNUAL TOTAL PUBLIC EXPENDITURE
INCREASES OF 1.4 PERCENT. PECK ASKED PERMREPS TO PLACE
REINFORCEMENT CAPABILITTY REDUCTIONS IN PERSPECTIVE. UK
CONTRIBUTION TO AMF WILL BE FULLY DEPLOYABLE; UKMF EQUIPPED
IN 1968 FOR A WORLD-WIDE ROLE, WIL NOW BE FULLY EQUPPED
FOR A NATO ROLE; SOUTHERN REGION CUT MOST BECAUSE OF EXPENSE
OF LOGISTICS IN MAINTAINING IT. HE PROMISED PERMREP
CATALANO THAT HE WOULD PUT IDEA OF SHIP VISITS TO MEDITERRANEAN
TO HIS GOVERNMENT.
14. ACTING CHAIRMAN PANSA THEY ATTEMPTED TO SUM UP MEETING.
HE SAID PERMREPS HAD BY-AND-LARGE RESTATED CONCERNS
OF MC, AND THAT SEVERAL AMBASSADORS HAD STATED REGIONAL
CONCERNS. FURTHERMORE, SEVERAL HAD EXPRESSED HOPE THAT UK
WOULD RECONSIDER RESOURCES DECISION, BASED ON MC PRIORITIES,
AND VIRUTALLY ALL HAD FAVORED CONTINUED CONSULTATIONS. PANSA
POINTED OUT TWO LIMITING FACTORS: UK INSISTENCE ON RESOURCE
CEILING AS FIRM, AND CONFLICT IN VIEWS OF REGIONAL PRIORITIES.
HE AGREED TO HAVE IS PREPARE A "DRAFT COMMUNICATION" FROM
DPC TO UK GOVERNMENT BASED ON ALLIED STATEMENTS TO FEBRUARY
6 MEETING WHICH DPC CAN CONSIDER ON MONDAY, FEBRUARY 10. (MISSION
WILL FORWARD DRAFT WHEN RECEVIVED). IN ANSWER TO DESTAERCKE QUESTION,
PANSA STATED THAT DPC HAD, IN EFFECT, APPROVED MC ASSESS-
MENT OF MILITARY IMPLICATONS.
15. PANSA THEN ASKED FOR PRESS GUIDANCE ON UK/NATO
CONSULTATIONS. AFTER COLLOQUY WITH PECK AND BUWALDA
(NETHERLANDS), DPC DECIDED THAT, IN ABSENCE OF COMPELLING
REASON TO DO OTHERWISE, NATO INFORMATION SERVICE WOULD
NOT REPEAT NOT TREAT UK DEFENSE REVIEW IN SUBSTANTIVE
WAY UNITL AFTER PUBLICATION OF UK DEFENSE WHITE PAPER IN
MARCH. DPC WILL CONSIDER PRESS GUIDANCE AGAIN AT MEETING
FEBRUARY 10.
BRUCE
SECRET
<< END OF DOCUMENT >>

Raw content

PAGE 01 NATO 00657 01 OF 03 071545Z
70 S
ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 PM-03 INR-07 L-02 ACDA-05
NSAE-00 PA-01 RSC-01 PRS-01 SP-02 USIA-06 TRSE-00
SAJ-01 MC-02 EB-07 /051 W
--------------------- 069091
P R 071515Z FEB 75
FM USMISSION NATO
TO SECSTATE WASHDC PRIORITY 9971
SECDEF WASHDC PRIORITY
INFO ALL NATO CAPITALS 4968
USCINCEUR
SHAPE
USLOSACLANT
CINCLANT
USDOCOSOUTH
USDEL MBFR VIENNA
S E C R E T SECTION 1 OF 3 USNATO 0657
E.O. 11652: GDS
TAGS: MPOL, NATO,UK
SUBJECT: UK DEFENSE REVIEW: DPC DISCUSSION FEBRUARY 6
REF: A. USNATO 0520
B. USNATO 0574
C. USDELMC 101/75(DTG 031450Z FEB 75)
D. STATE 025780(EXDIS)
E. STATE 026620(EXDIS)
SUMMARY: DURING DPC DISCUSSIONOF UK DEFENSE REVIEW FEBRUARY 6,
PERMREPS CONCURRED IN MC ASSESSMENT (REF B), SYMPATHIZED WITH UK
ECONOMIC PLIGHT (BUT WITH MOST MEMBERS REQUESTING UK RECONSIDERA-
TION OF AT LEAST PART OF FIRM UK RESOURCE DECISION), AND ADDED
POLICIAL AND PSYCHOLOGICAL DIMENSION TO EXPRESSED MILITARY CONCERNS.
TONE OF MEETING WAS GENERALLY CONSTRUCTIVE. DPC RATIFIED MC
INVITATION FOR CONTINUING CONSULTATIONS BETWEEN UK ANDMNC'S, AND
DIRECTED IS TO PRODUCE DPC COMMUNICATION TO UK FOR CONSIDERATION
SECRET
PAGE 02 NATO 00657 01 OF 03 071545Z
AT FURTHER MEETING FEBRUARY 10. END SUMMARY.
1. AT DPC MEETING FEBRUARY 6, ACTING CHAIRMAN PANSA OPENED
DISCUSSION BY STATING THAT UK DEFENSE REVIEW REDUCTIONS ARE
LARGEST AND MOST IMPORTANT WHICH DPC HAS EVER CONSIDERED; INVOLVING
A KEY ALLY WHICH MAKES MAJOR FORCE CONTRIBUTIONS TO ALL
THREE MNC'S. HE RECOUNTED HISTORY OF INTER-ALLIED CONSULTATIONS
SO FAR (REF A) POINTING OUT THAT PROCESS OF CONSULTATION WILL NOT END
WITH DPC, BECAUSE OF UNRESOLVED ASPECTS IN UK PLANS AND
BECAUSE OF MILITARY COMMITTEE (MC) RECOMMENDATION FOR CONTINUED
CONSULTATIONS. HE PROPOSED THAT DPC USE CURRENT MEETING FOR
EXPRESSION OF INSTRUCTED NATIONAL VIESS ON UK PLANS AND MC ASSESSMENT
(REF B),ON THE BASIS OF WHICH IS WOULD PRODUCE A DRAFT COMMUNI-
CATION FROM DPC TO UK GOVERNMENT, FOR DPC CONSIDERATION
FEBRUARY 10. HE ALSO STATED NEED FOR PRESS GUIDANCE ON UK
DEFENSE REVIEW CONSULTATIONS.
2. ADMIRAL SIR PETER HILL-NORTON (CMC) ECHOED PANSA VIEW OF BROAD
SCOPE OF UK REDUCTION PLANS, STATING THAT UK'S HAD BEEN "QUITE THE
MOST DIFFICULT REVIEW." HE SAID MC ASSESSMENT IDENTIFIED AREAS
OF GREATEST MILITARY CONCERN, BUT HE HAD "NO DOUBT" THAT,
EVEN RECOGNIZING UK PRIORITY TO NATO COMMITMENTS, LIMITED
REMAINING RESOURCES WOULD RESULT IN "VERY SERIOUS DEGRADATION" OF
ALLIED CAPABILITY. HE SAID HE PLANS TO ASK MNC'S TO PURSUE
CONTINUED CONSULTATIONS "WITH URGENCY", BUTTHAT IF SUCH CON-
SULTATIONS FAIL, ONLY ONE OF THREE RESULTS COULD ENSURE:
OTHER ALLIED GOVERNMENTS MUST TAKE UP THE SLACK,THE UK MUST
RECONSIDER ITS RESOURCE ALLOCATION OR ALLIES MUST FACE DAMAGE. HE
SUPPORTED MC ASSESSMENT AS STRIKING THE RIGHT BALANCE BETWEEN UK
VIEW (THAT ONE SHOULD NOT OVEREMPHASIZE EFFECT OF UCTS)
AND VIEW OF OTHERS THAT UK PLANS PLACE NATO STRATEGIC CONCEPT IN
QUESTION (BELGIUM-SEE REF C).FINALLY, HE EXPRESSED PERSONAL
HOPE THAT THE UK WOULD "RETHINK" THE EXTENT OT ITS REDUCTIONS
AND AGREE TO CONTINUING CONSULTATIONS WITH MNC'S.
3. PECK (UK ) REPLIED THAT PROCESS OF CONSULTATIONS "WILL NOT
END HERE." HE THEN DELIVERED INSTRUCTED STATEMENT (SEPTEL)
REVIEWING ECONOMIC IMPERATIVES UNDERLYING DEFENSE REDUCTIONS,
FACT THAT DONWARD ADJUSTMENTS WILL BRING UK DEFENSE EXPENDITURES
AS A PERCENT OF GNP TOWARD NATO EUROPE AVERAGE, FIRMNESS OF UK
DECISION TO REDUCE AND FIRMNESS ON SIZE OF REDUCTION, UK PRIORITY
SECRET
PAGE 03 NATO 00657 01 OF 03 071545Z
ON NATO AREA AND MINIMUM EFFECT OF REDUCTIONS OF ALLIANCE
CAPABILITIES, GIVEN RESOURCE CONSTRAINTS. HE STATED UK IS
PREPARED TO CONSIDER ANY ALTERNATIVES WITHIN THESE RESOURCE
CONSTRAINTS, BUT QUOTE MY MINISTERS WILL NOT BE VERY RECEPTIVE
TO RECOMMENDATIONS FROM THE ALLIANCE WHICH, IN EFFECT, MERELY
URGE THEM TO RECONSIDER THEIR DECISIONON THE LEVEL OF RESOURCES
THAT BRITAIN CAN DEVOTE TO DEFENSE. END QUOTE.
4. CATALANO (ITALY) CITED DECEMBER 1974 DPC MINISTERIAL
STATEMENT OF MOD FORLANI CALLING FOR REVISION OF PRIORITIES
TO PREVENT DEPARTURE OF UK FLAG FROM THE MEDITERRANEAN. HE
NOTED MC ASSESSMENT USE OF SUCH TERMS AS "VERY SERIOUS...
GRAVE... SEVERE BLOW," IN REFERRING TO EFFECT OF UK PLANS
IN SOUTHERN REGION. HE TERMED MEDITERRANEAN POLITICAL
SITUTATION "PARTICULARLY FLUID AND WORRISOME," AND EXPRESSED
SURPRISE THAT UK SHOULD GIVE "FIRST PRIORITY FOR REDUCTIONS
TO THE MEDITERRANEAN." HE PREDICTED THAT SOVIETS WOULD
INTERPRET UK WITHDRAWAL AS A WEAKENING OF NATO DETERRENTAND PUBLICS
SEE IT AS WARNING SIGN OF ALLIANCE DISCORD AND DECAY. HE
THEN"FORMALLY MOVED" THAT DPC AFFIRM CONTINUED UK MILITARY PRESENCE
IN MEDITERRANEAN AS "ESSENTIAL," WITH EXTENT OF PRESENCE
SUBJECT TO CONSULTATIONS, BUT TO INCLUDE AT LEAST NAVAL EXERCISE
PARTICIPATION. FINALLY, HE URGED MAINTENANCE OF UK CAPABILITY
TO REINFORCE THE SOUTHERN REGION AS "LOW-COST, NO-COST" MEASURE.
SECRET
PAGE 01 NATO 00657 02 OF 03 072033Z
70 S
ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 PM-03 INR-07 L-02 ACDA-05
NSAE-00 PA-01 RSC-01 PRS-01 SP-02 USIA-06 TRSE-00
SAJ-01 MC-02 EB-07 /051 W
--------------------- 072429
P R 071515Z FEB 75
FM USMISSION NATO
TO SECSTATE WASHDC PRIORITY 9972
SECDEF WASHDC PRIORITY
INFO ALL NATO CAPITALS 4969
USCICEUR
USNMR SHAPE
USLOSACLANT
CINCLANT
USDOCOSOUTH
USDEL MBFR VIENNA
S E C R E T SECTION 2 OF 3 USNATO 657
5. DE STAERCKE (BELGIUM) REMARKED THAT IT IS DIFFICULT TO BE
"EITHER PLEASED OR SAD" WITH UK PLANS. HE STATED: "I MUST
STRIKE MY OWNBREAST FIRST," IN THAT UK FOLLOWS EXAMPLE OF
OTHERS, BUT THAT UK REDUCTIONS WOULD HAVE A "MOST STRIKING"
EFFECT ON PUBLIC OPINION, SINCE THEY CALLED THE STRATEGIC
CONCEPT AND DETERRENCE ITSELF INTO QUESTION. HE ASKED PECK IF
UK WOULD CONSIDER MC PRIORITIES FOR RESTORATION, AND ASKED
ADMIRAL SIR PETER HILL-NORTON IF SOUTHERN FLANK STILL EXISTS AND
WHETHER ONE CAN DEFEND IT. HE STRONGLY AGREED WITH CATALANO ON
DANGERS WHICH WILL FLOW FROM WITHDRAWAL OF UNION JACK FROM
MEDITERRANEAN, AND ASKED PERMREPS RHETORICALLY IF THEY WERE NOT
STRUCK BY POLITICL IMPLICATIONS OF FACT THAT US WOULD BE ONLY
REMAINING ALLY ABLE TO BALANCE WP POWER IN THAT REGION. CMC
HILL-NORTON REPLIED THAT PLANNED UK WITHDRAWAL WOULD TAKE PLACE
OVER A PERIOD OF YEARS, THAT SOUTHERN FLANK STILL EXISTS AND
MILITARY AUTHORITIES ARE CONFIDENT THEY CAN DEFEND IT AT THIS TIME.
6. AMBASSADOR BRUCE(US),DRAWING ON REFS D AND E, STATED US
SECRET
PAGE 02 NATO 00657 02 OF 03 072033Z
WAS PLEASED WITH UK PRIORITY ON CONTRIBUTION TO CENTER REGION,
EASTERN ATLANTIC AND HOME ISLANDS. HE EXPRESSED CONCERN WITH
DEGRADATION IN ALLIANCE CAPABILITIES FOR REINFORCEMENT,
PROPOSING REDUCTION IN UK OVERHEAD COSTS AS AN ALTERNATIVE,
AND SUGGESTED UK LESSEN IMPACT ON MEDITERRANEAN NAVAL AND AIR
REDUCTIONS BY PUBLICLY ANNOUNCING INTENT TO MAKE PERIODIC SHIP
AND TASK FORCE DEPLOYMENTS TO AREA, AND PARTICIPATE IN NAVAL
EXERCISES. HE HOPED THAT UK WOULD ENSURE THAT DEFENSE EX-
PENDITURES ARE NOT CUT SIMPLY BECAUSE THEY ARE MORE EASILY
CONTROLLABLE, HE SAID THAT US FOR ITS PART IS DETERMINED TO
MAINTAIN REAL LEVEL OF DEFENSE SPENDING,BUT HE ALSO
STRESSED THAT OUR ABILITY TO DO SO
"IS BOUND TO BE INFLUENCED BY CONGRESSIONAL JUDGMENTS AS TO HOW
WELL OUR ALLIES ARE MAINTAINING THEIR FORCE LEVELS." FINALLY, HE
SUPPORTED MC RECOMMENDATION FOR CONTINUING UK-MNC CON-
SULTATIONS AND SUGGESTED UK AVOID CUTS PLANNED AT END OF
COMING FIVE- YEAR PERIOD BY SAVINGS ACHIEVED THROUGH PARTICIPA-
TION IN COOPERATIVE PROGRAMS,LOOKING TOWARD STANDARDIZATION OF
WEAPONRY(SEE SEPTEL.
7. BOSS(FRG) TOATLLY AGREED WITH MC ASSESSMENT. HE SAID
FIRMNESS OF UK DECISION ON AMOUNT OF REDUCTIONS MAKES CON-
STRUCTIVE CONSULTATION DIFFICULT, BUT URGED CONTINUED CON-
SULTATION. HE STATED UK REDUCTIONS INFLUENCE NORTHERN (BALTAP)
AS WELL AS SOUTHERN REGION, AND THAT OVERALL EFFECT IS A
"NOTICEABLE WEAKENING" OF ALLIED CAPABLITY TO DETER. HE
TOOK ISSUE PERCENT OF N GNP AS YARDSTICK FOR MEASURING
DEFENSE EFFORT, AND STATED THAT SINCE ONLY BASIS FOR DEFENSE
REVIEW IS ECONOMIC ,HE LOOKS FOR REVISION OF UK PLANS "AS
SOON AS THE ECONOMIC SITUATION IMPROVES.
8. CHARGE SELMER (NORWAY) EXPRESSED CONCERN THAT IN VIEW OF
FIRM UK DECISION ON RESOURCES, CONSULTATION MIGHT DEVELOP
INTO REGIONAL TUG-OF-WAR. HE SAID HIS AUTHORITIES STRESS
INTERDEPENDENCE OF ALL THREE REGIONS, BUT DREW SPECIAL
ATTENTION TO MC ASSESSMENTS' RECOMMENDATION FOR REVIEW OF
ASW/MCM INATLANTIC/CHANNEL AND NORTHERN FLNK REINFORCE-
MENT CAPABILITIES. HE SAID UK REINFORCEMENT REDUCTIONS
WOULD HAVE POLITICAL REPERCUSSIONS AND MIGHT RESULT IN
WP MISCONCEPTION ON DEPTH OF NATO COMMITMENT. HE ASKED
UK TO RECONSIDER REDUCTIONS IN LIGHT OF MC ASSESSMENT AND
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PAGE 03 NATO 00657 02 OF 03 072033Z
FIND SOLUTIONS BASED ON MC RESTORATION PRIORITIES.
9. MENZIES(CANADA) EXPRESSED UNDERSTANDING FOR UK
ECONOMIC PLIGHT, AND RECOGNIZED PRIORITY UK HAD GIVEN TO
CENTRAL FRONT, BUT STATED CAREFUL STUDY OF UK PLANS HAD
SHOWN THAT EFFECT OF CUTS IS WORSE THAN ON "FURST BLUSH."
HE DECLINED TO SAY WHICH REDUCTIONS WERE WORST, BUT POINTED
OUT CANADIAN AWARENESS OF IMPORTANCE OF UK CONTRIBUTION TO
ACLANT/ACCHAN. HE RECOMMENDED CLOSEST ALLIED CONSULTATION
OVER THE TEN YEARS OF THE REDUCTIONS,AND SUPPORTED
AMBASSADOR BRUCES' POINTS ON INCREASED EFFICIENCY THROUGH
ALLIED COOPERATION.
10. CHARGE BUWALDA (NETHERLANDS) STATED HE HAD BEENF FORCEFULLY
REMINDED THAT "PEOPLE INGLASS SOUSES SHOULD NOT THROW
STONES." HE EXPRESSED FULL SYMPATHY WITH UK ECONOMIC PLIGHT
AND WELCOMED UK PRIORITY TO CENTER REGION. HE STATED,
HOWEVER, THAT DEFENSE OF FRONT IS NOT POSSIBLE IF FLANKS
ARE NEGLECTED,THAT SOUTHERN REGION WAS ALREADY WEAKENED,
AND THAT UK REDUCTIONS WOULD HAVE MILITARY AND PSYCHOLOGICAL
EFFECTS ON ALLIED COHESION,SOLIDARITY AND RESOLVE, THUS
WEAKENING THE DETERRENT. HE FEARED AMPHIBIOUS LIFT RE-
DUCTIONS WOULD RESULT IN EVENTUALLOSS OF ASSULT CAPA-
BILITY ON NORTHERN FLANK,AND ECHOED NORWEGIAN POINT
OR REDUCTIONS IN ASW AND MCM (CABAPLITIEIES. HE NOTED
NETHERLANDS HAD AMENDED ITS DEFENSE REDUCTIONS AS A
RESULT OF ALLIED CONSULTATIONS AND FOUND CONSULTATION
PROCESS "USEFUL." HE RECOGNIZED UK ECONOMIC DIFFICULTIES,
BUT SUGGESTED SERIOUS UK THOUGHT TO RECONSIDERATION ON
RESOURCE.
11. SVART (DENMARK) EXPRESSED SYMPATHY WITH UK ECONOMIC
SITUATION AND RECOGNIZED THAT UK DEFENSE EXPENDITURE, EVEN
AT END OF TEN-YEAR PERIOD WOULD IMPLY A "VERY SIGNIFICANT
BUDER." HE ECHOED FRG AND NORWAY CONCERN OVER LOSS OF
75 PERCENT OF NORTHERN FLANK REINFORCEMENT CAPABILITY, BUT
NOTED UKMF DEPLOYMENT TO NORTHERN REGION WOULD STILL BE
POSSIBLE. HE STATED THAT "OVER-CONCERN"- REGION SHOULD NOT LEAD
TO AN UNTENABLE SITUATION ON THE FLANKS, AND HOPED UK WOULD
TAKE MC ASSESSMENT INTO ACCOUNT
IN FURTHER PLANNING.
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PAGE 04 NATO 00657 02 OF 03 072033Z
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PAGE 01 NATO 00657 03 OF 03 071804Z
70 S
ACTION EUR-12
INFO OCT-01 ISO-00 CIAE-00 PM-03 INR-07 L-02 ACDA-05
NSAE-00 PA-01 RSC-01 PRS-01 SP-02 USIA-06 TRSE-00
SAJ-01 MC-02 EB-07 /051 W
--------------------- 070635
P R 071515Z FEB 75
FM USMISSION NATO
TO SECSTATE WASHDC PRIORITY 9973
SECDEF WASDC PRIORITY
INFO ALL NATO CAPITALS 4970
USCINCEUR
USNMR SHAPE
USLOSACLANT
CINCLANT
USDOCOSOUTH
USDEL MBFR VIENNA
S E C R E T SECTION 3 OF 3 USNATO 0657
12 ERALP(TURKEY), SPEAKING UNINSTRUCTED, MADE VERY SHORT
STATMENT RATIFYING PREVIOUS EXPRESSIONS OF INDIVISIBILITY
OF ALLIANCE DEFENSE. HE STATED MC AND SACEUR JUDGMENTS
WERE OF GREAT CONCERN AND NOTED PROSPECT FOR CONTINUING
UK/MNC CONSULTATIONS. IN OBVIOUS REFERENCE TO US MILITARY
ASSISTANCE CUT-OFF, HE NOTED THAT "EVENTS OF THE LAST FEW
DAYS MAY ALTER SITUATION CONSIDERABLY", AND HOPED THAT THESE
EVENTS WOULD BE TAKEN INTO ACCOUNT.
13. PECK(UK) THEN THANKED PERMREPS FOR UNDERSTANDING AND
SYMPHATHY WITH UK ECONOMIC SITUATION, WHILE REITERATING THAT UK
DECISION ON PLANNED LEVEL OF RESOURCES IS FIRM. IN ANSWER
TO DE STAERCKE'S QUESTION (PARA 5) ON MC PRIORITIES FOR
RESTORATION, PECK REPLIED THAT LONDON WOULD CONSIDER THESE
PRIORITIES WITHIN PLANNED RESOURCE CEILINGS.HE DEFENDED
UK USE OF PERCENT OF GNP AS A YARDSTICK, BECAUSE UK IS
TRYING TO MEASURE DEFENSE BURDEN ON RESOURCES. GNP IS
BEST BECAUSE IT QUOTE MEASURES DEFENCE AGAINST ALTERNATIVES
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PAGE 02 NATO 00657 03 OF 03 071804Z
END QUOTE. RESPONDING TO POINTS RAISED BY AMBASSADOR BRUCE,
PECK STATED THAT UK HAD ALREADY SERIOUSLY SCRUTINIZED
NATIONAL OVERHEAD, AND THAT UK WOULD DO MORE, INCLUDING
POSSIBLE REDUCTIONS WITHIN UK MOD. HE STATED THAT DEFENSE
IS NOT BEING CUT BECAUSE IT IS UNPOPULAR, AS SHOWN BY
PLANNED ANNUAL REAL DEFENSE INCREASE BY 1.6 PERCENT UP TO
1978/1979 AGAINST REAL ANNUAL TOTAL PUBLIC EXPENDITURE
INCREASES OF 1.4 PERCENT. PECK ASKED PERMREPS TO PLACE
REINFORCEMENT CAPABILITTY REDUCTIONS IN PERSPECTIVE. UK
CONTRIBUTION TO AMF WILL BE FULLY DEPLOYABLE; UKMF EQUIPPED
IN 1968 FOR A WORLD-WIDE ROLE, WIL NOW BE FULLY EQUPPED
FOR A NATO ROLE; SOUTHERN REGION CUT MOST BECAUSE OF EXPENSE
OF LOGISTICS IN MAINTAINING IT. HE PROMISED PERMREP
CATALANO THAT HE WOULD PUT IDEA OF SHIP VISITS TO MEDITERRANEAN
TO HIS GOVERNMENT.
14. ACTING CHAIRMAN PANSA THEY ATTEMPTED TO SUM UP MEETING.
HE SAID PERMREPS HAD BY-AND-LARGE RESTATED CONCERNS
OF MC, AND THAT SEVERAL AMBASSADORS HAD STATED REGIONAL
CONCERNS. FURTHERMORE, SEVERAL HAD EXPRESSED HOPE THAT UK
WOULD RECONSIDER RESOURCES DECISION, BASED ON MC PRIORITIES,
AND VIRUTALLY ALL HAD FAVORED CONTINUED CONSULTATIONS. PANSA
POINTED OUT TWO LIMITING FACTORS: UK INSISTENCE ON RESOURCE
CEILING AS FIRM, AND CONFLICT IN VIEWS OF REGIONAL PRIORITIES.
HE AGREED TO HAVE IS PREPARE A "DRAFT COMMUNICATION" FROM
DPC TO UK GOVERNMENT BASED ON ALLIED STATEMENTS TO FEBRUARY
6 MEETING WHICH DPC CAN CONSIDER ON MONDAY, FEBRUARY 10. (MISSION
WILL FORWARD DRAFT WHEN RECEVIVED). IN ANSWER TO DESTAERCKE QUESTION,
PANSA STATED THAT DPC HAD, IN EFFECT, APPROVED MC ASSESS-
MENT OF MILITARY IMPLICATONS.
15. PANSA THEN ASKED FOR PRESS GUIDANCE ON UK/NATO
CONSULTATIONS. AFTER COLLOQUY WITH PECK AND BUWALDA
(NETHERLANDS), DPC DECIDED THAT, IN ABSENCE OF COMPELLING
REASON TO DO OTHERWISE, NATO INFORMATION SERVICE WOULD
NOT REPEAT NOT TREAT UK DEFENSE REVIEW IN SUBSTANTIVE
WAY UNITL AFTER PUBLICATION OF UK DEFENSE WHITE PAPER IN
MARCH. DPC WILL CONSIDER PRESS GUIDANCE AGAIN AT MEETING
FEBRUARY 10.
BRUCE
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<< END OF DOCUMENT >>